Hello Bob,
My name is John. I was inquiring if you know of any oil or gas activity in the Pine Grove area of St. Helena parish.
I am a property owner in that area and am very interested if there is. My property borders Paper company land on Two sides.
thanks.
John
Hi John – I haven’t heard anything but newspaper states activity is increasing, especially by Devon.
Bob thanks for your replay, one question where is Devon located?
Bob Souvestre said:
Hi John -- I haven't heard anything but newspaper states activity is increasing, especially by Devon.
What or where is “Devon”?
Devon Energy is out of Oklahoma.
John Thompson said:
What or where is "Devon"?
Hello. I'm new to the TuscaloosaMarineShale/St.HelenaParish groups. Have been contacted by DEVON. Charles.
Hello Charles -- Would you share the terms that Devon is offering and on how many acres that you own? And did Devon contact you directly or are you dealing with a Landman? Thanks, Bob.
Charles R. Coleman said:
Hello. I'm new to the TuscaloosaMarineShale/St.HelenaParish groups. Have been contacted by DEVON. Charles.
God morning Bob. Relatives have been contacted by DEVON, telephone contact is over, they have all info needed....I am anxious to see what comes in the first mail contact...would that be an offer?????
Bob Souvestre said:
Hello Charles -- Would you share the terms that Devon is offering and on how many acres that you own? And did Devon contact you directly or are you dealing with a Landman? Thanks, Bob.
Charles R. Coleman said:Hello. I'm new to the TuscaloosaMarineShale/St.HelenaParish groups. Have been contacted by DEVON. Charles.
I have a question. landman offered $100.00 dollars an acre for three years. Is this $100.00 an acre each of the three years?
The lease terms will be specific and written. Lease terms vary. It is important to read and understand what the written lease states.
Charles R. Coleman said:
I have a question. landman offered $100.00 dollars an acre for three years. Is this $100.00 an acre each of the three years?
Question: (small tract of land) If the operator does only the horizontal drilling, would they need to lease the surface also....?
Bob Souvestre said:
The lease terms will be specific and written. Lease terms vary. It is important to read and understand what the written lease states.
Charles R. Coleman said:I have a question. landman offered $100.00 dollars an acre for three years. Is this $100.00 an acre each of the three years?
I am not familiar with leasing so can't answer this question.
As to Charles's two questions:
1. The particular lease terms will determine how you are paid, when, and for what. However, most leases being taken today, particularly in the Tuscaloosa Marine Shale, are "paid-up" leases, meaning you receive a one-time bonus payment rather than a periodic rental payment. Based on what you posted, and "common practice," it appears you are being offered a $100 per acre, one-time signing bonus for granting a three year lease. The bonus would normally be paid in full at the time you sign the lease.
2. Operators rarely, if ever, lease the surface land itself. A standard oil and gas lease in Louisiana gives the company the right to use land for the well location, but only so much as is "reasonably necessary." Simply put, even though the well will be horizontal, they have to poke a hole somewhere. Typically well locations will not be on tracts smaller than 20 acres, and there are laws regulating how many feet away from a building a well can be. If you are concerned about your surface land being used for drilling or operations, you could request that your lease have a "no surface operations" clause that prohibits such activity. If your tract is small, this should not be a problem for the lessee.